Law of Averages

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Just who is your average investor? We all hear about this person each time we turn on the television, tune in the radio, or read a publication and discover someone offering financial advice to the masses. You usually hear about the average investor in relation to the hot topics of the moment, such as:

• When should the average investor sell a stock?
• What fund should the average investor own in the new millennium?
• How will the new tax laws affect the average investor?
• Will the average investor benefit from a Roth IRA?
• How does the average investor determine his/her risk tolerance?

But nobody tells you if they're talking about:

• The average newly married couple
• The average family with young kids
• The average empty-nester
• The average young, single, working person
• The average business owner
• The average retiree
• The average single parent

By keeping yourself informed using information targeted to the average investor, who doesn't exist, you are more likely to end up with average results—I call this the law of averages.

Life would become a whole lot easier to manage if we were able to boil things down to the lowest common denominator. But, your unique circumstances, goals, priorities, time horizons, and personality, define what will work for you when compared to the generalizations often served up on television, radio, or in publications.

By working closely together, I believe we can each take credit for results that have been anything but average. But, let's ensure we maintain this direction by scheduling some time in the near future to review your circumstances. While the average investor might not recognize the value of such updates, I know I can expect to hear from you soon.